Artificial intelligence (AI) has been evolving at a remarkable pace, with fresh competitors stepping in to challenge industry giants. One such rising name is DeepSeek, an AI-focused company that has attracted attention by developing efficient and cost-friendly models that compete directly with tools like OpenAI’s ChatGPT.
But DeepSeek isn’t just another AI venture trying to make an impact. Its focus is not only on creating smart models but also on making training faster, reducing costs, and excelling in specific areas such as logical reasoning, coding, and handling extensive context in conversations. To understand such AI models better and make the most of them, consider getting AI certifications by the Global Tech Council.
The Origins of DeepSeek
DeepSeek traces its beginnings to a quantitative trading hedge fund called High-Flyer. Initially, this company specialized in financial markets, but stricter Chinese regulations in 2021 forced them to rethink their approach. Since High-Flyer already had expertise in machine learning, transitioning to AI research and development was a natural step.
Fast forward to 2025, and DeepSeek had successfully built multiple advanced AI systems, such as:
- DeepSeek-R1 (deepseek-reasoner) – Primarily designed for logical problem-solving and math-related tasks.
- DeepSeek-V3 – A model built to handle natural, flowing conversations.
- DeepSeek-V2.5 – A versatile system with strong abilities in both dialogue and programming.
What sets DeepSeek apart is its training efficiency. OpenAI’s GPT-4 reportedly needed over $100 million and thousands of GPUs to train, whereas DeepSeek reached similar levels of capability with just $6 million and 2,000 Nvidia H800 GPUs in only 55 days.
Why DeepSeek’s AI is More Efficient
Building powerful AI systems usually demands massive financial resources, but DeepSeek has found ways to keep costs low while still achieving impressive results.
Key Methods That Keep DeepSeek Cost-Effective
Smarter Use of Hardware
- Relies on Nvidia H800 GPUs, known for their high-speed processing and energy efficiency.
- Reduces both time and power consumption required for training.
Optimized Learning Algorithms
- DeepSeek fine-tunes its training methods to avoid unnecessary computation.
- This makes the model faster while maintaining accuracy.
Better Distribution of Resources
- Instead of relying on massive supercomputers, DeepSeek spreads out its workload across mid-tier servers.
- This approach reduces hardware expenses while keeping performance high.
Thanks to these techniques, DeepSeek manages to create high-quality AI models at a fraction of the cost that competitors require.
The Core AI Models of DeepSeek
DeepSeek has released several models, each serving a different purpose. Below is a breakdown of its most well-known ones.
DeepSeek-R1: Built for Reasoning
Also referred to as deepseek-reasoner, this model specializes in solving logical and mathematical problems using step-by-step reasoning techniques.
Where DeepSeek-R1 Excels
- Solving math equations with precise accuracy.
- Handling logic puzzles that require multiple steps to resolve.
- Interpreting complex datasets to extract useful insights.
Performance Benchmarks
- 91.6% accuracy on the MATH-500 evaluation.
- Outperformed GPT-4 in difficult reasoning-based assessments like GPQA Diamond.
Because of these capabilities, DeepSeek-R1 is widely used in academic research and data-driven industries.
DeepSeek-V3: A Conversational AI Assistant
This model powers DeepSeek’s AI chatbot, designed to carry out fluid, long-form conversations. With support for 64,000 tokens, it excels in lengthy discussions and document analysis.
Where DeepSeek-V3 is Useful
- Customer Service: Manages long and interactive conversations while remembering past interactions.
- Text Processing: Summarizes lengthy reports, legal contracts, and research papers.
- Education: Provides clear and detailed answers to student inquiries.
Notable Features
- Compatible with OpenAI’s API, making it easy for developers to integrate.
- Effective for both casual users and professional applications.
With its capabilities, DeepSeek-V3 is a strong alternative to ChatGPT and Google Gemini.
DeepSeek-V2.5: The Hybrid AI Model
DeepSeek-V2.5 is an open-source system that merges features from DeepSeek-V2 and DeepSeek-Coder, balancing skills in writing, reasoning, and programming.
What’s Better in V2.5 Compared to Earlier Versions?
- More refined writing abilities for content creation and structured responses.
- Improved coding performance, generating better code and spotting errors.
- Stronger safety measures to prevent security vulnerabilities in AI usage.
Performance Scores
| Task | DeepSeek-V2.5 Score | Improvement Over V2 |
| Writing | 89.6% | +24.9% |
| Roleplay | 43.2% | +15.4% |
| Math (MATH-500) | 82.8% | +8.0% |
| Coding | 34.38% | +5.14% |
Due to its versatility, DeepSeek-V2.5 is ideal for researchers, software engineers, and educators.
How DeepSeek Compares to ChatGPT
When tested against ChatGPT, DeepSeek performed better in technical and logic-based tasks but wasn’t as strong in creative writing and open-ended discussions.
| Task | DeepSeek Score | GPT-4 Score |
| Math (AIME 2024) | 79.8% Pass@1 | 63.6% Pass@1 |
| Coding (CodeForces) | 1820 rating | 1316 rating |
| Reasoning (MATH-500) | 94.3% Pass@1 | 90.0% Pass@1 |
| Software Engineering | 49.2% Resolved | 41.6% Resolved |
DeepSeek is superior for coding and structured thinking, while ChatGPT is better for storytelling and creative tasks.
Challenges That DeepSeek Faces
While DeepSeek has many advantages, there are still a few limitations:
Strict AI Content Control
- Operates under China’s strict regulations.
- Avoids politically sensitive or controversial topics.
Limited Language Capabilities
- Works best in English and Chinese.
- Less effective in other languages.
Scalability Issues
- As usage grows, DeepSeek must expand its infrastructure.
- Keeping response times low will be a challenge.
Final Thoughts
DeepSeek is rapidly proving itself as a strong competitor in the AI industry. It delivers high performance, long-context memory, and cost-efficient training, making it a worthy alternative to ChatGPT.
For developers, businesses, and researchers looking for affordable, high-quality AI, DeepSeek is a smart choice. But for those prioritizing creative writing and open-ended conversations, ChatGPT still has an edge.
